Boston Scientific (BSX) Fell Amid Rising Competition

Baron Funds, an investment management company, released its “Baron Health Care Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund rose 5.39% (Institutional Shares) in the quarter, compared to a 5.05% gain for the Russell 3000 Health Care Index (benchmark) and an 8.18% gain for the Russell 3000 Index (the Index). The Fund performed similarly to the Benchmark this quarter. Solid stock selection was primarily offset by negative effects from active sub-industry allocations and cash holdings during a rising market. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Baron Health Care Fund highlighted stocks such as Boston Scientific Corporation (NYSE:BSX). Boston Scientific Corporation (NYSE:BSX) manufactures and markets medical devices that operate in the MedSurg and Cardiovascular segments. The one-month return of Boston Scientific Corporation (NYSE:BSX) was 2.81%, and its shares gained 15.26% of their value over the last 52 weeks. On November 3, 2025, Boston Scientific Corporation (NYSE:BSX) stock closed at $98.59 per share, with a market capitalization of $146.154 billion.

Baron Health Care Fund stated the following regarding Boston Scientific Corporation (NYSE:BSX) in its third quarter 2025 investor letter:

"Boston Scientific Corporation (NYSE:BSX) is a global manufacturer of medical devices used in a broad range of interventional medical specialties. While the company continues to execute well, particularly with its Watchman device and pulsed field ablation (PFA) offerings, shares fell during the quarter amid rising competition in the attractive PFA space for treating arrhythmia. Medtronic has launched its Affera system, Johnson & Johnson markets Varipulse, and Abbott offers its Volt system—all large-scale rivals with significant sales forces and established electrophysiology footprints. Despite this competitive backdrop, we believe Boston Scientific remains a strong compounder. Coupled with cost discipline and more than 50 basis points of annual operating margin expansion, we think the company’s double-digit earnings per share growth profile makes it a compelling name within the large-cap medical device universe."

Boston Scientific Corporation (NYSE:BSX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 100 hedge fund portfolios held Boston Scientific Corporation (NYSE:BSX) at the end of the second quarter, compared to 108 in the previous quarter. Boston Scientific Corporation (NYSE:BSX) announced that its consolidated revenue for the third quarter of 2025 reached $5.065 billion, indicating a 20.3% growth compared to Q3 2024. While we acknowledge the potential of Boston Scientific Corporation (NYSE:BSX) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Boston Scientific Corporation (NYSE:BSX) and shared the list of best stocks to buy according to Citadel LLC. Polen Focus Growth Strategy acquired a 2% position in Boston Scientific Corporation (NYSE:BSX) during Q3 2025. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.